Baby Groomers Launch

July 25, 2010
BABY GROOMERS LAUNCH
LETTER OF TRANSMITTAL
25TH July-2010 Ms.Ayesha Aman, Course Instructor, Iqra University.
Dear Madam, This is the final project report based on the LAUNCHING OF A PRODUCT/SERVICE that was assigned to us. It is being submitted to you on July 25th 2010. The report has been prepared keeping in mind the topic that was the product launch.
________________ SARAH SIDDIQUE
_________________ UME-HANI AR
_______________ AROOBA ARIF
_________________ NAZIA BI HASSAN
_________________ _________ SYED MUHAMMAD FARAZ
July 25, 2010
ACKNOWLEDGEMENT
We would like to thank Almighty Allah for giving us the strength to complete this research project. We would like to thank to our course facilitator, Ms.Ayesha Aman, for giving us such a useful assignment. And finally, we wish to thank all those people who have helped us in different ways for the completion of this project; without their help, the report would not have been in this presentable form.
July 25, 2010
Table of Content
S.no 1 2 3 Synopsis Salon and Spa design Internal environment 4 5 6 Mission statement Good wages/salaries Job security Rewards Training and improvements Team building 8 Contents Page 5 6 7
Customer market Geographic dispersion Family life cycle Social stratification Age group
Competitors Public Financial public Media public Government General public Internal public
9 9
Macro environment Political Demographic Competitive advantages 12

Cultural factor Social class Social factor Personal factor
10-11
Consumer behavior
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9

Product Service specialty Product mix consistency Product line Product quality Product features Product style 16 Pricing strategies Adjustment policy Uniform delivered pricing 17 18 13-15
10
Pricing
11 12
Distribution/location Promotion Objective Advertising objective Advertising strategies Advertising media
13 14 15 16 17
Product life cycle BCG matrix SWOT analysis Recommendation conclusion
19 19 20 21 22
July 25, 2010
Synopsis
Baby clipper is launching Baby groomer in the market. Baby groomer is a hair salon and spa only for kids from 1-12 years. The name signifies that this salon and spa is for kids only. As we are launching this product in Karachi for the first time. The target market that we have selected are the kids from 1-12 years, the education background is optimal. We have carefully studied and ensured that the products we will use in the salon and spa are not hazardous and we will provide hygienic and friendly environment to the kids and their guardians. Our marketing strategy is planned with respect to characteristics of the Pakistani society. Especial attention was given to the factor that we are not violating any political and legal, social and cultural rules and regulations. All the 4 Ps (product, price, place and promotion) have been effectively dealt with. Our price is set according to market rate which covers our cost and we have kept an optimal profit. We are opening our salon in Zamzama. Our advertising strategy includes two phases in which we are going to advertise our product using every possible instrument, in order to reach each and every person of our targeted population. As our hair salon is a complete new innovation there are no direct competitors. So we have a significant competitor advantage. This will give us monopoly in the market.
July 25, 2010
HAIR SALON AND SPA DESIGN
July 25, 2010
Internal Environment of Baby groomers

Mission statement: styling and massaging with entertainment
GOOD WAGES / SALARY: Salaries and wages are the main reason for any one who
wants to join a company as an employee. Keeping this in our mind, we will pay them fairly, but in recession it will not be easy to cut down their wages and if we cut down their wages it can be counterproductive as their motivation would fall down and they may not work efficiently.
JOB SECURITY: Mostly employees seek for job security and they dont like uncertain
situations. Keeping this in mind the best motivation is permanency of job so that our employees wont feel insecure and they will give their best because they will know that no one will fire them.
REWARDS: Rewarding your staff does not mean giving lavish gifts that will ruin the
company's financial structure. Even the odd drink or meal outside the organization makes the difference, and if they achieve certain targets or really do something outside of the box, well try to offer a small reward, just to let them know how appreciated they are.
TRAINING AND IMPROVEMENT: Every organization strives for the success and
they try to improve their product and services quality in order to gain customer satisfaction. With changing trend and fashion, we will have to train our employees so that they can learn the latest cuts and fashion styling. For this we can send employees to foreign countries so they can learn latest trendy hair cuts and style. For massage training they may go out to learn new massages.
TEAM BUILDING: Team work is very important for almost all the organization, if the
employees could not get along with each other than it will create problems for business, for this purpose we encourage team building. To build teams we can take our employees for dinners or we can arrange a simple get together annually to increase their efficiency.
July 25, 2010
CUSTOMER MARKET
1. Geographic dispersion: Urban
Geographic dispersion for our services is urban, because people from rural areas are not worried about their kids styling nor can they afford it. Mostly people belonging from urban areas are worried about their looks, style and fashion.
2.
Family life cycles: Families with kids

We are launching this salon and spa only for kids. This service is for all those families in which there are kids from 1-12 years old.
3. Social stratification: the upper middle class and above

The social stratification which we have taken is upper middle class and above. Because mostly people from upper middle class and above are worried about their childrens look and they can afford.
4. Age group: The youth.
July 25, 2010
COMPETITORS
There is no direct competitor of our hair salon because the idea is unique and there isnt any hair salon for kids. But our direct competitor can be any other hair salon who may want to open hair salon only for kids.
PUBLICS
FINANCIAL PUBLIC
The company is self financed by its owners, and stock holders who have a strong belief in the company. Although a sum of money for the import of the hair products and expert other transactions a local bank is involved.
MEDIA PUBLIC
Media plays an important part in the promotion of any service, product and brand strong support from different instruments of media should be insured. We are going to advertise our product through electronic as well as print media. So our promotional technique will have full ethical and legal considerations.
GOVERNMENT PUBLIC
Our legal department is going to ensure that our salon operation is in accordance with regulations and policies. We have experienced corporate lawyers in hand which will guide and rectify the company concerning legal boundaries.
GENERAL PUBLIC
All the products that are used in the baby groomer are from the best companies and none of the product is harmful for kids. We have ensured that the products we use are the best for children.
INTERNAL PUBLIC
Workplace obstacles that were causing dissatisfaction and de motivation in the workplace are dealt with. These obstacles were low salaries such that obtaining basic necessities of daily living becomes a problem; lack of essential equipment, tools and supplies to work with; delayed promotions; difficulties and inconveniences with transportation to work. There is now a more friendly and stable environment in the company which is influencing the employees to work more effectively and efficiently. 9
July 25, 2010
MACRO ENVIRONMENT
POLITICAL AND LEGAL
The political environment of business is one that deals with the concepts of politics and the way they influence business operations. Its important to understand laws that are the outcome of the political process; therefore they are fundamentally a core issue concerning business managers. Specific strategies for managers can take are, having a proactive approach (one that improves performance in an industry and avoids political attacks and government intervention). There is no such political or legal environmental impact on our company directly.
DEMOGRAPHIC
Demographics concern the measurement of the population. Demographic segmentation involves dividing the market into groups based on demographic variables such as: AGE GENDER INCOME OCCUPATION FAMILY SIZE RACE RELIGION The demographic segmentation for Baby groomer is as follows:
AGE: While looking at macro environment, the population of Pakistan is increasing rapidly
and most of the people are youngsters. There are many kids in Karachi and most of the Karachiites wants trendy look.
GENDER: Baby groomer is a unisex salon as all the kids need hair cuts once in a while or
within a month or two.
INCOME
In current times the Pakistani economy is facing recession and there is a high probability of decrease in income and now customers will be more income-sensitive. So we have priced our services according to the current situation and it is affordable for our target market. 10
July 25, 2010
OCCUPATION
Our services are for hair and spa related only for kids. In our society mostly women look after kids and they are the one responsible for kids grooming clothing and styling. So mostly mothers are our target market.
RACE AND RELIGION:

we have no specifications regarding this as our services available for all kids.
ECONOMIC
Economics plays a considerable role for our services. Although everyone needs a cut or trimming for hairs once in a while, they will evaluate our prices and compare it with others prices.
CULTURAL
Mostly Karachiites are style conscious and people from upper middle class and above stratification want their children to be presentable in front of everyone.
TECHNOLOGICAL
For our salon and spa services we need to have modern hair dryers with latest features and other equipments that make our work more efficient.
11
July 25, 2010
CONSUMER BEHAVIOR
FACTORS AFFECTING BUYING BEHAVIOR OF THEIR CONSUMERS:
CULTURAL FACTORS:
There can be no cultural factor involve in the consumer behavior or affecting it.
SOCIAL CLASS:
The Upper- Upper, Lower Upper, upper Middle.
SOCIAL FACTORS:
The products that will be used will be hygienic, pure & of halal ingredients that would not be harmful to the childs skin.
PERSONAL FACTORS:
AGE & LIFECYCLE: Its for the kids & the young ones. OCCUPATION: Business personals, professionals, ECONOMIC SITUATION: It does not have direct effect on our services or saloon. LIFESTYLE: Formal & Casual. PERSONALITY & SELF-CONCEPT: High class, trendy, stylish, classy, sophisticated personalities.
COMPETITIVE ADVANTAGE:
We do not have any such saloon in Pakistan for kids providing the services apart from cuttings only as we do for kids as we say; WE MAKE YOUR CHILD LOOK MORE SPECIAL & STYLISH.
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July 25, 2010
PRODUCT
Consumer Product:
It is basically a service oriented baby grooming Spa.
Specialty Product:
It has unique characteristic that this idea has never been launched by any one in Pakistan. The consumers and potential buyers would be willing to make extra efforts to utilize this new service for their kids. Product Mix or Product Portfolio: This baby grooming Spa consists of three major service lines; Product Mix width carries three different service lines, hair care, massaging and manicure pedicures Product Mix Length contains more than 5 best services Furthermore as far as product mix depth is concerned; we have variety of services that we are introducing. We are coming up with best ambiance and comfort variety of service, keeping in mind our target market and their lifestyles. We are coming up with the idea that will enhance the image of the market we are focusing and at the same time will provide them with the best comfort.
PRODUCT MIX CONSISTENCY:

Which shows how all services line we are providing, closely relates in different aspects? Our service lines are consistent in a way that each service line offer best comfort for your baby. But in the consistent way that each service line has completely different experience for the consumers.
Product Line:
In the line of Massages we are coming up with 3 more innovative features, that is, Aroma Herbal Oil In the line of cute Hair Cuts further unique ideas are there Party Cuts Baby cuts 13
July 25, 2010
Baby finches Trendy cuts In the line of styling most trendy looks are coming up Pin stylings Spikes Trendy stylings In the line of Bath (Shampooing) we are having an idea of No more tears Aromatic shampooing In the line of Babys Pedi and Manicure services, now includes two more innovative ideas Nail cuts Nail printing
PRODUCT QUALITY:
We use TOTAL QUALITY MANAGEMENT in our Spa to provide the best quality. We are working harder to deliver consistent quality in performance. Well deliver the best comforting and softening services for which consumers are paying to us. All products used during services would not be harmful for babys sensitive skin. Services feature: COMFORT, having two most comforting services in this service line that is, Massages, Babys manicure and pedicure BABY CARE, having further two best services of our Spa. That is Cute hair Cuts and Stylings AQUA TREAT, one most promising service is included in this service line is Babys Baths. Our Spas services will remain same in all the branches we will open further in any part of the World.
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July 25, 2010
We will also be considering line-filling strategy that is introducing new services in the service lines, for earning greater profits and making a renowned name in the world of Baby grooming Business.
PRODUCT STYLE:
Unique innovative hair salon and spa services
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July 25, 2010
PRICING
PRICING OBJECTIVE:
Pricing objective is to penetrate in the service proving market for Babies and then to maximize profit in long run.
Product pricing strategy:

Our Spa chooses market skimming prices strategy. We set a high price for our new services to skim maximize revenue layer by layer from the segments willing to pay the high price. So Spa would first provide fewer but profitable services.
Adjustment Strategy Price:

Its not applicable in our case. No price adjustments would be made because our prices are reasonable.
Uniform delivered pricing:

We will be charging the same amount of money in all the branches of the Spa regardless of the location. Services and ambiance would also be the same.
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July 25, 2010
DISTRIBUTION/LOCATIONS
Our Spa will be targeting Upper- Upper, Lower Upper and Upper Middle classes therefore we have chosen the locations of our outlets keeping our target market in mind Baby clipper Salon and spa is at ZAMZAMA Street Website is : www.cutenessspa.com.pk You can also join our face book forum THE BABY GROOMERs
Our toll free number is 0800-333-769
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July 25, 2010
PROMOTION
OBJECTIVE: to create the awareness of our salon and spas services among our target
market.
ADVERTISING OBJECTIVE: create awareness ADVERTISNG STRATEGY:

MESSAGE STRATEGY: to make our customer realize the need of utilizing our services while targeting mainly on there lifestyles. MESSAGE EXECUTION: we make your child look cuter than before
ADVERTISING MEDIA:
Electronic media
Print media
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July 25, 2010
Product Life Cycle

As our product is new in the market, this is in the introduction age. We are launching it 1st time in Pakistan. We have to increase the growth of our service, by providing the best services. As the growth rate increases we will slowly move it into maturity level. Then gradually we will increase our profit by increasing the prices of our services.
BCG Matrix
As this salon is new in the market, the market share is low and growth rate is also low thats why our product lies in DOGS. We earn very less profit. We earn enough cash to maintain ourselves.
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July 25, 2010
SWOT analysis
Strengths:
Innovative idea No direct competitors Expert hair stylists for kids We have bar facility in our salon Offering entertainment for children
Weakness:
A new name in the market that doesnt have any exposure in Karachi. Less good will Comparatively lesser market share
Threats:
Due to current economic conditions and load-shedding our customer may face some inconvenience Peace instability of Karachi. We dont have any direct competitor currently but we might have competitor in the future.
Opportunities:
There is no hair salon and spa for kids in Karachi. There is no direct competitor in the market.
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July 25, 2010
Recommendation
We Put Two Scenarios in front of us. Either our business goes in loss or it will be profitable. According to the situation we set our recommendations to our business. After launching Baby Grooming Services If our business goes in loss. So, Our strategies are different
Our Strategies In loss:

We try to advertise more. We Provide Complimentary Gifts To customers. Not to invest more. Target the other classes also except Upper-Upper , Lower-Upper and Upper-middle classes Reduce the prices. In low rates, try to provide much more quality in services.
Our strategies in Profitability:

Trying to open new branches Maintain the Quality Comes up with more new ideas Increase the staff
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July 25, 2010
Conclusion
Baby Clipper Co. Ltd comes-up with new idea, we launch new type of services in Karachi, which never ever been in Karachi. Our main target markets are Kids and Mothers. And the Baby Grooming services matters the most in upper-upper, lower-upper and upper-middle classes. The actual targets of Baby Clipper are these classes. We Launch a different type services that is very important for Kids, Now a days people are very much influenced with western ideologies. In the west the grooming of children is important task. So, the survey of upper classes says that our people also want these kind a services in Pakistan. Thats why we launch Baby Groomers (Hair Salon and Spa) in Pakistan with the hope it will give good business.
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July 25, 2010